The marketplace is driven by speculation, supply, and demand forces, not correlated to the intrinsic value of an asset. Amazon is the most valued company, unlike the Amazon rainforest, which is stripped of resources. If you want to know how to stake Klima, this guide is for you.
The Kilma ecosystem enables the Carbon market integration into the marketplace using blockchain technology to fight climate change. Apart from its distinct feature, it is possible to stake the coin for some extra rewards.
Today’s live KlimaDAO price is $4.87 with a 24-hour trading volume of $550.13. KlimaDAO is down 6.45% in the last 24 hours. The current CoinMarketCap ranking is #6480, with a live market cap of not available. The circulating supply is not available, and the max. supply is not available.
What is Klima Token?
Klima token is an algorithmic token built on the Polygon network backed by 1 Carbon Tonne. When the Klima value rises above 1 Carbon Tonne, the protocol mints new tokens to bring the price down, and when the Klima value drops below 1 Carbon Tonne, the protocol burns supply bringing the price up. Excess reserves are redistributed to the Klima Dao and stakers.
How does Klima Staking work?
When the Carbon Custodied (CC) by the Klima treasury is higher than the assets needed to back Klima (excess reserves), the protocol will mint and distribute tokens to stakers. CC is the tokenized Carbon offsets held by the Klima treasury. The rate at which new tokens are minted is controlled by a variable called the Reward Rate.
Staked Klima is referred to as Sklima. 1 Klima = 1 Sklima. When the Klima dao protocol mints new Klima tokens, there will be more Klima than the Sklima. The Sklima is rebased to ensure the 1:1 ratio.
Reward rate = 1 – Klima Deposits/ Sklima Outstanding
Since only a portion of Klima is staked, a user earns a larger share of Sklima from the rebase.
Reward Yield = Reward rate/ (%Staked* %Circulating)
So the Annualized Kilma Reward (AKR) will be:
(1+ Reward Yield)(365* 24/ Block time in hours)
How to Stake Klima on the Vera wallet?
You must have Matic in your wallet to foot transaction fees less than $0.2 per transaction. Never share your wallet seed phrase.
Step 1 – Purchase Klima
According to Coinmarketcap, you can purchase and trade Klima on Uniswap V3 (Polygon) with WMatic, Quickswap with USDC, and Hotbit with USDT. To buy on Quick Swap decentralized exchange:
- Visit the Quickswap exchange
- Click the ‘Swap’ tab at the top of the page
- In the form presented, under the “From” option, select USDC, and “under To (estimate)” option, select Klima.
- Click ‘Connect Wallet’. Connect your wallet and sign the transaction.
- Enter the number of USDC you want to swap for Klima.
- Click ‘Swap’ and sign the transaction on your wallet.
- Disconnect your wallet from the DEX.
Step 2 – Stake Klima
- Visit the Klima dao app
- On the left-hand side, click the ‘Stake Klima’ tab.
- Click ‘Connect wallet.’ Select your wallet from the list, and scan the QR code to connect. Our balance will then reflect on the app.
- Enter the number of Klima you want to stake.
- Click ‘Approve.’ Sign the Staking contract on your wallet.
- Click ‘Stake.’
The Sklima will reflect on your wallet and the app. You can then proceed and disconnect from the app. Staking rewards will be sent to your wallet.
Step 3 – Withdraw Klima and rewards.
- On the Klima Dao app, click unstake.
- Enter the number of Sklima to unstake
- Approve the transaction on your wallet.
How much can you Earn by Staking Klima?
The reward rate determines the reward distributed to stakers. The reward rate is directly proportional to the excess funds in the Klima treasury. Refer to ‘How does Klima Staking work?’ above to learn how the reward rate is determined.
At the time of writing:
- Klima rewards held for 5 days with compounding have a return of 0.83%.
- The annualized Kilma reward if the current rate remains unchanged for the year is 183%
- If you staked 1 Klima on launch day, you would have 17.27 Sklima today.
Benefits of Staking Klima
- Anyone can participate in the Klima staking program, provided the total amount available for staking is not exceeded.
- The Klima reward is compounded, so holders earn higher rewards.
- The Klima staking program adds flexibility to portfolio management with quick and efficient compounding without a lock-up period.
- Staked Klima can be traded in an external market.
- A high annual Klima return rate
- The ecosystem upholds sustainability by curbing Carbon emissions.
Risks of Staking Klima
- The first and most obvious risk of staking Klima is its value dropping over time, resulting in a loss of capital.
- Klima is listed in a few crypto exchanges.
- Interacting with DEXs is not a beginner-friendly process. A beginner should have basic knowledge of crypto wallets and blockchain bridges.
- The staking reward is not constant; when there are no excess funds in the treasury, the staking reward is zero.
- The Klima price is highly volatile, and its low market capitalization makes it prone to market manipulation.
Should you Stake Klima?
Yes. Staking Klima is profitable, with an annual Kilima return of 183%. Stalin Klima is a sustainable way of bringing value to the Carbon market. Users are incentivized to keep the environment clean of Carbon emissions through blockchain technology. The coin is, however, highly volatile, resulting in high gains or losses in the capital; the crypto market is unpredictable.
Conclusion
The profits from Klima staking are massive, so having an extra source of income is not a bad idea. Following this guide’s instructions, you can start your Klima staking journey and add some little coins to your pocket while preventing climate change.
The post How to Stake Klima Tokens 2022 (Complete Guide) first appeared on Cryptopolitan.
